Paycom Software (NYSE:PAYC – Get Free Report) and Calix (NYSE:CALX – Get Free Report) are both mid-cap computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, risk, analyst recommendations, dividends, institutional ownership and valuation.
Insider and Institutional Ownership
87.8% of Paycom Software shares are owned by institutional investors. Comparatively, 98.1% of Calix shares are owned by institutional investors. 13.2% of Paycom Software shares are owned by company insiders. Comparatively, 17.4% of Calix shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Analyst Recommendations
This is a summary of current ratings and recommmendations for Paycom Software and Calix, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Paycom Software | 1 | 11 | 5 | 0 | 2.24 |
| Calix | 1 | 3 | 6 | 0 | 2.50 |
Profitability
This table compares Paycom Software and Calix’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Paycom Software | 22.10% | 24.25% | 8.25% |
| Calix | 3.20% | 4.30% | 3.52% |
Earnings & Valuation
This table compares Paycom Software and Calix”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Paycom Software | $2.05 billion | 3.06 | $453.40 million | $8.09 | 16.27 |
| Calix | $1.00 billion | 2.93 | $17.88 million | $0.48 | 95.60 |
Paycom Software has higher revenue and earnings than Calix. Paycom Software is trading at a lower price-to-earnings ratio than Calix, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Paycom Software has a beta of 0.77, indicating that its stock price is 23% less volatile than the S&P 500. Comparatively, Calix has a beta of 1.27, indicating that its stock price is 27% more volatile than the S&P 500.
About Paycom Software
Paycom Software, Inc. provides cloud-based human capital management (HCM) solution delivered as software-as-a-service for small to mid-sized companies in the United States. It offers functionality and data analytics that businesses need to manage the employment life cycle from recruitment to retirement. The company's HCM solution provides a suite of applications in the areas of talent acquisition, including applicant tracking, candidate tracker, background checks, on-boarding, e-verify, and tax credit services; and time and labor management, such as time and attendance, scheduling, time-off requests, labor allocation, labor management reports/push reporting, geofencing/geotracking, and Microfence, a proprietary Bluetooth. Its HCM solution also offers payroll applications comprising better employee transaction interface, payroll and tax management, payroll card, Everyday, Paycom pay, Client Action Center, expense management, mileage tracker/fixed and variable rates, garnishment administration, and GL concierge applications; and talent management applications that include employee self-service, compensation budgeting, performance management, position management, and Paycom learning, as well as my analytics. In addition, its HCM solution provides manager on-the-go that gives supervisors and managers the ability to perform a variety of tasks, such as approving time-off requests and expense reimbursements; direct data exchange; ask here, a tool for direct line of communication to ask work-related questions; document and checklist; government and compliance; benefits administration/benefits to carrier; benefit enrollment service; COBRA administration; personnel action and performance discussion forms; surveys; 401(k) reporting; report center; and affordable care act applications, as well as Clue, which securely collects, tracks, and manages the vaccination and testing data of the workforce. Paycom Software, Inc. was founded in 1998 and is based in Oklahoma City, Oklahoma.
About Calix
Calix, Inc., together with its subsidiaries, engages in the provision of cloud and software platforms, and systems and services in the United States, rest of Americas, Europe, the Middle East, Africa, and the Asia Pacific. Its cloud and software platforms, and systems and services enable broadband service providers (BSPs) to provide a range of services. The company provides Calix Cloud platform, a role-based analytics platform comprising Calix Engagement Cloud, Calix Service Cloud, and Calix Operations Cloud, which are configurable to display role-based insights and enable BSPs to anticipate and target new revenue-generating services and applications through mobile application, such as CommandIQ for residents and CommandWorx for businesses; Calix Intelligent Access EDGE, an access network solution for automated and intelligent networks; and Calix Revenue EDGE, a premises solution for subscriber managed services. It also offers SmartLife managed services, including SmartHome managed services and applications to enhance, operate and secure the connected experience of subscribers in their home; SmartTown managed services that reimagine community Wi-Fi as a ubiquitous, secure, and managed experience across a BSP's footprint; and SmartBiz managed services that address the business networking and productivity needs of business owners with an all-in-one managed service. In addition, the company provides Wi-Fi systems under GigaSpire and GigaPro brands to be ready for deployment as a complete subscriber experience solution for BSP's residential and business subscribers. It offers its products through its direct sales force and resellers. The company was incorporated in 1999 and is headquartered in San Jose, California.
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